Residential building material growth price continued to rise at the end of 2025, despite a softer new home construction market. The latest Producer Price Index (PPI) from the U.S. Bureau of Labor Statistics (BLS) showed that price growth for residential construction inputs remained higher than 3% since June, indicating persistent cost pressures for both builders and developers.Â
Building material prices have seen the largest annual increase since early 2023, now up 3.5% year over year. Metal particularly stands out, with metal and trim prices having surged nearly 50% compared to last year. Some material prices, such as softwood lumber and ready-to-mix concrete, have softened in response to stagnant construction spending. However, the overall trend predicts continued cost pressures builders through the early part of 2026.Â
